Broker Charles Schwab rolled out Q4 results early Wednesday after Interactive Brokers just missed earnings forecasts late Tuesday. Schwab stock pared losses after falling more than 5% early Wednesday. IBKR stock climbed after retreating premarket.
Charles Schwab reported a 36% drop in adjusted earnings to 68 cents per share, edging out FactSet expectations of 64 cents per share. GAAP earnings nearly halved to 51 cents from 97 cents per share last year. The results marked six consecutive quarters of earnings declines. Net revenue fell 19% to $4.46 billion, just short of forecasts of $4.48 billion.
Schwab reported a 29% decline in net interest revenue due to higher interest expenses while asset management and administration fees increased 18.3%. Trading revenue and bank deposit account fees both fell during the quarter.
Charles Schwab added $306 billion in core net new assets during the 2023 fiscal year, bringing total client assets to a record $8.52 trillion at year-end.
Schwab stock faded 1.3% Wednesday after falling 5.2% in early trade on the results, triggering the automatic sell rule. Schwab had brief cleared a 68.80 entry in a cup base in mid-December.
Interactive Brokers
Greenwich, Conn.-based Interactive Brokers announced Q4 adjusted earnings of $1.52 per share, up nearly 17% from last year but just missing FactSet expectations of $1.53 per share. Revenue increased 16.6% to $1.139 billion, just beating forecasts of $1.137 billion.
Net interest income increased 29% to $730 million while commission revenue climbed 5% to $348 million.
Interactive Brokers' earnings and revenue growth both slowed over the past three quarters.
IBKR stock rose 2.3% Wednesday after retreating nearly 4% premarket. The stock faded 1.3% Tuesday. Shares are trading just below an 89.72 buy point for a cup-with-handle base.
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